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Economic Impacts of Hitler’s rule - Coggle Diagram
Economic Impacts of Hitler’s rule
Re-employment
(Positive)
Point
One economic Impact of Hitler’s rule was Re-employment
Story
Germany economy was facing major problems at that time when Hitler came into power, with over five million unemployed people and a major crisis in the Farming Sector
The president of the Reichsbank and Minister of Economics , Dr Mjalmar Schacht, helped to reorganise Germany’s finances such that new jobs could be provided
He also encouraged Hitler to initiate public work programs such as the building of roads, motorways, and public buildings.
The Nazis involved the Reich Labour Service, an agency to reduce unemployment.
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This affected Germany as it reduced unemployment while at the same time providing infrastructure and facilities for the public
Rise of Big Industries
(Positive)
Point
One economic Impact of Hitler’s rule was the rise of Big Industries
Story
Big businesses forged a close relationship with the Nazi government as a result of the Nazi government’s attempts to make Germany self-sufficient.
Under the New Plan of 1934, industries important to Germany were subsidised, and imports were barred
Production of important products such as oil, steel, coal, and explosives increased, and companies that produced these were given valuable government contracts to make these items
In return, they supported the government.
The ban of trade unions also helped the big businesses, as employers no longer had to worry about conflict with workers. Workers were also under the strict control of the government
Goering’s Four Year Plan, the plan to prepare Germany for war in four years, also had a huge impact on big businesses.
The massive amounts the state spent on rearmament boosted the incomes of companies involved in the production of war materials.
In return, these big companies made compulsory donations directly to the NDSAP.
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These big industries thrived, and their production of important products contributed to the boost in the economy. At the same time, the Nazis did not have to be concerned about the Party’s finances while strengthening their power and influence
Control of Trade Unions
(Positive and Negative)
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One Economic Impact of Hitler’s rule was the control of Trade Unions
Story
When Hitler first came into power, one of the first things he did was to abolish Trade Unions
Instead, workers were forced to join a workers’ organisation controlled by the Nazis, called the German Work Front, which united employers and employees in a single body
Workers were strictly controlled by the DAF, or German Work Front. While they could no longer be sacked on the spot, they were no longer allowed to strike or bargain for pay raises or better conditions
All workers were given ‘work books’ where employers made comments about them, and these workers needed the government’s permission to leave their jobs.
In some industries, workers were not allowed to change jobs at all
With these testrictions in place, prices were stablilsed, more people had work, and there were fewer strikes.
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This impacted Germany as while Germany’s economy seemed to be improving in general, it was at the expense of the workers’ wages and benefits.
Organising Workers’ leisure time
(Positive)
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One economic impact of Hitler’s rule was the organising of the leisure time for workers
Story
The Nazis realised that the workers’ support was vital and offered them some benefits to satisfy them.
These workers were praised in Nazi propaganda for playing an important role in Germany’s drive to be a great nation
The German Work Front set up schemes such as “Strength through joy”, which provided cheap theatre and cinema tickets, organised courses and cultural and sports events
The main objective was to control people’s leisure time, but these activities and holidays had a lot of appeal.
The State scheme by which workers could save five Marks a week towards a cheap car, the KDF-Wagon, was also extremely popular
Another DAF scheme was the ‘Bueaty of Labour’, which was set up to improve the working conditions of workers. Conditions in factories were improved under this scheme, and washing facilities as well as low-cost canteens were set up
However, workers often had to indirectly pay for them, hence making it seem like they were designed to keep people at their workplaces.
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This allowed the Nazis to gain the support of the workers, and hence boost the workers morale. This resulted in fewer strikes or fewer complaints, resulting in greater economic growth
Militarisation
(Positive)
Point
One economic impact of Hitler’s rule is militarisation
Story
In 1935, the Nazis introduced conscription for the army, which reduced unemployment drastically.
By 1939, there were 1.4 million men in the army.
This created many jobs as men were needed to make war materials such as weapons, equipment, and uniforms
Hitler also decided that Germany needed a morden Air Force, the Luftwaffe
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The achievement of this decision helped to boost the economy while at the same time provide employment